EVENT REVIEW: Packaging Machinery Manufacturers Institute
“Cut input costs with processing and packaging efficiency” Dated: 1 June 2008
As the world’s largest consumer-driven economy, the US is also home to among the most innovative and forward-setting packaging trends. Competition will push the food segment and packagers to continue developing new products and packaging styles designed to capture specific consumer niches, says Matt Croson, vice-president for member services and communications at PMMI.
AFJ: Health and wellness are shaping packaging trends in food. How can packaging address these issues of nutrition?
We continue to see consumer trends moving toward natural and organic products. Consumer packaged goods or CPGs are responding by introducing new products and recipes that reduce preservatives. However, their products still need to reach the consumer as fresh and as flavorful as they were when initially packaged. This requires CPGs to consider new packaging materials with higher barrier properties such as barrier laminations and coextrusions, metalized or foil-based structures and “smart” packages with an active component like an oxygen scavenger. As consumers are looking to make “smarter”, or more nutritious, choices when making food purchase decisions, they are looking to product labeling for more nutritional information. Through packaging, CPGs are making it easier for consumers to fi nd the information with banners that prominently list calories, fat, fiber, calcium, sugars, and various vitamins and minerals.
AFJ: PMMI shared that food companies would lead the trend in packaging growth in 2008. What accounts for such an upbeat forecast for food above other sectors like personal care and pharmaceuticals?
PMMI’s 2008 Purchasing Plans Report indicated that $2.635 billion will be spent on packaging equipment for the food industry, an increase of 2 to 4 percent from 2007. This forecast was based on 511 interviews with CPG executives who are responsible for selecting and/or ordering packaging machinery throughout the US. Fundamentally, demand for food does not change significantly year to year, despite current economic conditions. In fact, packaged foods may experience a slight spike, as consumers cut expenses by cooking meals at home rather than dining out.
AFJ: The PMMI trends report noted that there’s strong interest in out-sourcing, particularly in the food industry. Can you single out a few other trends?
Recently, we have seen a boom in the number of single-portion snacks and side dishes in small pouches or rigid containers. Not only does this format make a product more convenient for consumers to take on the go, it makes it easier for them to maintain a nutritious diet. The emphasis on package design in general will continue to be important to how brands differentiate their products on store shelves. This year at PACK EXPO International, we will highlight hundreds of award-winning packaging designs from internationally recognized packaging associations through “The Showcase of Packaging Innovations”. We have increased the “Containers & Materials Pavilion” to 60,000 square feet—about 10 percent more than the previous show.
Chains such as Safeway, Whole Foods Markets and Wal-Mart, are pushing solar panel installation projects to gain a 30% tax credit. Kathy Loftus from Whole Foods Market, commented: "We're hoping that our purchases along with some other retailers will help bring the technology costs."
After X5 announced that all new hypermarkets will be opened under the Karusel brand, Russia's largest food retailer, gained 3.2% in London trading. The retailer aims to add as much as 160,000 sq m of space this year as economic growth in Russia enables more people to buy higher-priced foods and shop in stores rather than at open markets.
Wal-Mart has announced plans to invest around USD 1 billion in Brazil and open 80 to 90 new stores, in all its formats, in 2009. It will be the largest investment the retailer has made in Brazil since it opened its first operation in Sao Paulo in 1995.
Although sales are up by 17% for Fresh & Wild Ltd, the UK unit of Whole Foods Market, the company has reported ₤7 million loss for the year to September 30, 2007. Some analysts feel that there is too much working against Whole Foods for it to really get off the ground.
Carrefour has been keeping its entry into Iran low-key, as both the retailer and Tehran's government suspect that the foreign presence may cause some excitement. It is not clear yet how feasible it will be for Carrefour to maintain supply in the face of financial restrictions on trade with Iran as a result of US sanctions.
The sale of 107 Somerfield stores, purchased last month by the Co-operative Group, is being handled by Credit Suisse which has requested that potential bidders offer up proposals before 22 August.
